It’s very tempting to house shop online and crunch all the numbers yourself before taking any steps in buying a home, but don’t wait around just because you aren’t sure. Talk to a loan officer first and see where you’re really at. Remember, the pull on your credit will only affect it by a few points.

Talk to 3 lenders. Start with a big bank, then a local credit union, then a brokerage so you have 3 options. Your credit report will last around 4 months and closing will take about 30 days, so you have about 3 months to shop for a house once you have your preapprovals. Just make sure that you talk to your loan officer first before you make any big changes like changing jobs, buying a car, or financing a bunch of furniture.

Connect with Kyle:

Purchase Price Calculator: https://www.winthehouseyoulove.com/max-purchase-price-calculator

LoanClarity Advisor: https://www.winthehouseyoulove.com/advisor

On YouTube: https://www.youtube.com/c/WinTheHouseYouLove

Online: https://www.winthehouseyoulove.com/

We cover ALL of this in the “Get Your Finance Sh*t Together” self-study course at confidentmoneypodcast.com!

Now Open: Money Mavens group coaching program! There’s a special prize for anyone who signs up in the first week at confidentmoneypodcast.com.

Enter to win a free strategy session with me!  Leave a 5-star review and include your IG handle to enter. We draw the winner at the beginning of each month. 

FTC/Affiliate Disclaimer: By using some of these links, at no extra cost to you, I may earn a small commission or referral fee, which helps me continue to produce content like this, support my business, and my team.

DISCLAIMER: I am not a financial advisor and this is not financial advice. My podcast is for educational purposes and is my personal opinion only. To make the best financial decision for your situation, please do your own research and if needed, seek the advice of a fee-based, fiduciary.

Music credit: Neon Fairies by Wolves 

A Podcast Launch Bestie production

Welcome back to our mini season, talking all

things, mortgages and home buying.

We have Kyle Seagraves here, who is a certified mortgage advisor,

licensed loan originator, and the owner of win the house.

You love a YouTube channel with over a hundred thousand subscribers,

Kyle, again, welcome back.

I feel like this is just gonna be old hat at some point.

And today we're gonna talk about all things, timing with the home loan process.

So, you know, pre-approval how the approval process works.

You know, how to really just schedule and plan for what this can look like.

Yeah.

This trips up people a lot, because I think.

Especially for those people who are like me, who everything has to be an

calendar and be organized and have to prepare for every single step in my life.

Uh, it can be a little frustrating because you don't have as much control over it.

Um, and ultimately there is this fear of.

Rejection that I think prevents us from actually taking the first step.

Because we have, we're listening to so much information.

We're like, oh, am I ready to buy now?

Or do I have enough savings or is this the right move?

I am hearing stuff about the market.

When in reality, there is zero risk.

And applying for a mortgage and starting the conversation.

Um, it's kind of in a similar way.

Like, I, I have a friend of mine who, uh, he just got of a relationship and

he was like, oh, I I'm ready to start getting back into something a little

bit, but I'm afraid of, you know, I'm not, I don't know if I'm ready.

I was like, Hey, there's zero risk.

It's just a date.

You're not, you're not getting married.

I pro like, please don't get married.

The first person.

Get married off the first day.

Like just dip your toe in the water.

It's fine.

It's just a date.

Same thing with applying for a mortgage.

Like you can begin talking with a loan officer and it just be that,

Hey, I just wanna see where I'm at.

Could you, could you let me know where my credit's at, where my budget is?

Uh, show me some numbers so I can get familiar with this.

I'm not sure if I'm ready to move forward, but I'd like to

take a, a first look at this.

I think people can really be embarrassed sometimes too.

mm-hmm.

where they think they are financially and what

they think that means or the story they think it tells about them.

And I think that wherever you are is where you are, but knowing where you

are and like what you can afford, or if you need to make changes, or if you

need to do some work, I think can be incredibly empowering, but you don't

know unless you've talked to someone and, and started or dipped your toe.

Yeah, this is why I think it's helpful to have that.

I think we talked about this in the first episode, like, Hey, don't

talk about your numbers with people.

because like, let's only talk about numbers with people who can help

us make decisions about numbers.

Um, because if I'm telling all my numbers to all my friends and family,

and then I go and talk to a loan officer, I'm gonna have that fear of

like, well, what if, what if I have to come back with different news?

And they think about my situation differently or, or whatever,

whatever that narrative is.

When, if we're just talking with the, the people who can actually help

us give us information about these numbers, uh, it takes off some of

that pressure of like, Hey, the loan, officer's really there to just help you.

See if you can qualify for a loan or not.

I promise you, they want to help you qualify for a loan cuz

they, they get paid that way.

Right.

right.

No loan officer gets paid by turning you down for a mortgage.

So if they can make it work, they're going to absolutely try to do that.

Um, not to say they're gonna, like all people are gonna just push you into

something that you're not comfortable.

but like they're incentivized to help you get a mortgage.

So they're not really there to sit and be like, haha, this

about your financial situation.

Right.

Uh, they're interested in say like, how can we help you

qualify for a loan and most loan officers that I I've talked to?

It's usually not just like a hard, no, it's usually like, Hey, here's the things

we need to work on to begin the process.

And really there is.

We can do all types of exercises and planning and scenarios

before we start that process.

But you will learn so much about your financial situation and about

the future of buying a house by just having that conversation.

Because when we talk with a loan officer, not only can we see,

can we get approved for a loan, but once we can, we figure out what

our monthly payment's gonna look like, how much house we can afford.

And then also what the upfront costs are going to.

Which just accelerates your planning so much further than if

you're just spending a ton of time, not actually taking that step.

And we're just theoretically looking at, well, the down

payment could be this month.

The payment could be that all to find out.

Then we get a, we apply and find out we're doing the math wrong.

Right.

I think we can all be guilty of Zillow shopping, but not actually, you know,

understanding what we have or what we can be working with versus, oh,

Hey, it looks like that, you know, $400,000 house that you kind of had

an eye on, or that range you were looking at, that's totally realistic.

That's totally doable.

Go for it.

And I think it can be a really freeing feeling to be like, I can do that or I

can do that once I've done X, Y, and Z, like it gives you such a clear action.

Yes, absolutely.

Yeah.

Rather than, yeah.

And rather than looking at like the $600,000 house and then getting

approved and being like, okay, actually can't do that right now, but it's

something we can do in the future.

It, just, to me, I, I tell people, I use the phrase like emotional failure, like,

are we setting ourselves up for emotional

mm-hmm

a lot of times we are, yeah.

We're kind of doing a little bit of sabotaging, um, because we

were afraid to take the next.

Yes.

So with the process and getting, you know, getting started and having that

conversation, let's say that maybe they're in a spot to start moving forward, right.

Maybe what they're looking at and what it sounds like, and their

finances and their debt and their credit scores and everything comes

together and they wanna move forward.

What does that next step normally look like for.

Um, so I think the first thing to do is begin talking

with three different lenders.

I'm gonna talk with.

I usually like to, uh, have people look at three different types of lenders.

So one being, uh, a big bank, um, or a big direct lender.

So this would be, uh, someone like, and I'm not vouching

for any of these companies.

Just throwing out examples.

Um, bank of America, Quicken loans those would be good examples of the,

kind of the big companies you see have commercials about mortgages.

Um, the next would be a local credit union.

It's gonna be local to either your city or county, your state, um,

some lender that just works with a small local group of people.

Uh, they might have some different options than a bigger national brand.

And then also looking at a.

Brokerage, um, brokers don't charge any extra.

They don't charge anything different than with a bank or a credit union.

Um, you actually might find some savings with a broker or more

creative options with a broker.

So shopping with these three different types of lenders will allow to have

a really good range of conversations and numbers to begin looking at.

And it's really as simple as I can.

Google mortgage broker near.

Find maybe some people with good reviews, give 'em a call.

Say, Hey, I'm looking to begin the process.

I'm not really sure where my credit's at.

Here's kind of, I'm thinking of buying a house that maybe is like this.

What would be the next.

They're usually gonna send you to, uh, most of the time, an online

application, or they might take it over the phone and all you're doing here

is you're just sharing, um, probably more financial information that you've

ever shared with anybody in your life.

Um, it's a lot of stuff.

Where do you love?

Where do you work?

How much do you make?

How much is in your bank account, all these different things.

Um, and usually they're gonna ask you for documents to support

what you put on your application.

So if you say I make $7,000 per month, they usually wanna see

the pace stub that supports.

That if you say I have $40,000 in my bank account, okay.

We need to say the bank support bank statement that supports that as well.

I just make sure that they're giving you something that's accurate, but as we

have these conversations with these three different types of lenders, it's gonna

start to draw some really good questions that we might have about the process

that we can ask those loan officers.

And that is going to really kickstart the process after you're done with that.

At this point, you should have three preapproval.

Meaning you're approved for a loan and three different loan quotes.

So we can see what the monthly payment's gonna look like, what the

upfront cost will look like as well.

Then at that point, you should be very confident about like, Hey, our

financing is kind of taken care of.

We did the steps, we got three yeses and we're ready to move forward

with the home shopping portion.

So once that happens, and I think that we'd encountered this

potentially once, but let's say you get preapproved faster than you were

anticipating, or let's say that in the market that we have today, you then go

out and you start health shopping, which.

I think can be both the fun and the horrid part of home buying depending

on who you are and what you like to do.

But let's say you get out there and you're doing it and you are getting, you know,

past cause normally these preapprovals.

If I remember correctly, have a, a time limit on them, if I'm remembering

correctly, what happens if it's like been six months and you're still

shopping and haven't found your house.

yes, if that happens, it's perfectly okay.

You're gonna survive.

nothing's gonna break apart.

Um, so use your credit report is gonna last four months.

So, what this usually means is you're gonna expect to be under

contract for home around 30 days.

From the time you put an offer and it's accepted to closing.

So that leaves you about three months to shop.

If it takes longer, it's perfectly okay.

Like there, there is no, there's no payment that's

required up front to get it.

Pre-approved if you, if a lender charges you, something like don't

work with, 'em no reputable, lender's gonna charge something.

And if you like, like, Hey, this is actually too much for us right now.

That's.

You can say that and back out there's no risk.

And so if that happens where you've been shopping and for a lot of people

in this market, this has been happening.

They're looking at homes for a few months and they can't find something that's okay.

Um, what you can do is talk with your loan officer and say like,

Hey, we haven't found anything yet.

And your loan officer might wanna handle it a couple different ways.

They might ask for an updated credit report where they might put

another inquiry on, if that's the case still, isn't gonna be a huge

impact to your credit score at all.

Maybe a couple points, that's it?

Um, if that's the case, it's okay.

For a lot of lenders, they'll be like, great.

Just let us know if anything big changes, anything big with your credit.

Big with your income.

They usually won't have to do anything updated until you're

ready to look at something.

Um, so if you're that adamant in the search process, I don't, I

personally don't think you need to keep getting updated credit

reports through the whole thing.

It's just, if there's any big change, Hey, you know, it's been six months

and then we apply it for our car.

You know, we got a new car and a new credit card, then maybe we

want to update the credit report to make sure it's still accurate.

But for most people, it's not something they have to worry about.

Just communicate with your loan officer and they'll help guide you through it.

Um, if you haven't found a home, like it's not like you have to go through the

whole process over again, they're just gonna be updating your loan application.

That makes total sense.

And that was actually going to be a question that I asked is I think

that a lot of advice that's given out is, you know, don't open any new

lines of credit when you're in the process of buying a house, right?

No auto loans, no big furniture purchases.

So I think that, that, and you can let me know if you disagree.

I think that sound advice if you're in the, if you've put an

offer and that's been accepted you're in that, that process.

But I think if we're talking about people that are looking maybe for an

extended period of time, I would say, maybe just chat with your loan officer

before you're making any big changes that could impact what you're able

to qualify for, rather than putting everything on hold for six to 12.

Absolutely.

Yeah, you absolutely can still make changes.

Just make sure that you do communicate those because they might change things.

You know, if you get a new car, like that's going to give you an inquiry,

lower, your average, your accounts increase your credit utilization,

uh, and change your credit mix.

So that could have a significant change on your credit report.

And so that's something you can do.

Uh, but if you're like actually under contract for a home,

we don't want to change.

Anything, when you're buying a house, it, introduces a lot of life change.

Uh, we wanna buy a new house, but then you a new car to just for the commute.

And then I want all this furniture and it's all this stuff.

Just do it after you absolutely can wait till after you buy a home, maybe you

don't have all the furniture in it's.

Okay.

You'll be alright.

You'll survive.

But you do not wanna derail your home purchase because you change

something with your credit.

So ultimately after you get a preapproval, In between that and closing on your

home, you just wanna make sure that any change that you're gonna make to

your credit or any big changes, like changing jobs or something like that.

Talk to your loan officer before you do that.

I was talking with a friend of mine who just bought a house recently and, um,

he just wrote an offer to buy a house.

So seller accepted it he's been under contract for maybe a week.

And then he was like, oh man, I forgot to tell you.

I'm about to take a, a job with another.

I was like, wait, no, you're not, no, don't stop.

Don't do it.

Do it after just wait.

Like, and so I was like, I wouldn't, you need to call your

company that you're gonna work for.

I was like, did you tell your company yet your company you work for now?

I was like, no.

Okay.

Tell them, Hey, we need to change my start date to after the closing.

And they accommodated it and it was fine, but otherwise, what would

happen is it completely changes his.

Even if he, even though he was making more money, it completely readjusts

everything and likely he would've had to been at the new job for a minimum of two

weeks, possibly a month to then close.

Would the seller ex extend the period for that long another month?

Probably not.

They might go with another offer.

Don't make any big changes to your income, to your credit or to the

money you have in your bank accounts.

Uh, until you talk with your loan.

That actually brings up a, a question B a funny story.

So I think that a lot of times with that, with the bank account, you

know, making any large changes, cash deposits, cash withdrawals.

during that timeframe and I, I will share mine.

And then I would love kind of your thoughts or guidance on that.

We, we sold our, my first house in September of 2019, did not plan to buy for

six months until the spring of 2020 went to go casually, look at houses in Idaho

in the first week of October in between the first week of September and the first

week of October, I had a large photo.

That large photo shoot included a lot of cash for images and, you know,

having some fun and doing all of that.

And I, and my infinite wisdom was like, this is fine because we're not looking

to qualify for a home until the spring.

Then when we put an offer in the first week of October, uh, I got

to answer some great questions.

This is why I had a very large cash with cash withdrawal and then a

very large cash deposit, the same amount in a 24-hour timeframe.

And I got to provide, it was actually my favorite thing once,

uh, my loan officer laughed her ass off about it when I told her why.

And she was like, yeah, I'm gonna need some pictures to just

kind of corroborate all of that.

And so I sent pictures over from the photo shoot and everything was fine,

but it definitely caused a snag.

in the whole process, but I at least knew that going in.

So what kind of, you know, advice do you have for people when it comes to

large bank deposits or withdrawals?

Uh, yeah, the withdraws is not much of a concern.

The only thing that the lender is looking at with withdraws is.

Are they monthly?

Are they things that happen regularly, monthly that would indicate there's a

debt not showing on the credit report?

That's the only thing they really care about with Charles.

Other than that, you know, , I have a funny story too.

Um, one of the loan officers here in, in our company was, uh, people don't

like sharing their bank statements.

Totally get it.

Um, we're not really looking at like how much you go to Chipotle.

I would be the most embarrassed person in

Right.

No judgment here.

Yeah, kind of

I go too many times.

Um, but.

We asked this lady for her bank statements.

And she was like, what do you wanna see?

How many, six toys I buy?

Like,

now.

now that you say it, I really am interested.

Uh, I wasn't, before your lender's not looking through like, oh, you

went to Speedway and you went here and like, they don't care about that.

The withdrawals are only looking to see, oh, is there a debt

Right.

up from the deposits?

Usually payroll deposits are easy to see.

We can see from a certain company, anything that's non-pay is going

to have a question added with it.

And it's not like this big interrogating.

No, one's gonna put a big light up to you and be like,

so, uh, what was this deposit?

Like?

It's not a big thing.

They're just gonna be like, Hey, this money came in.

Uh, we need to source it somehow.

And so there's a lot of places you can get money from that are acceptable.

But there are a lot that are unacceptable.

Things like loans, like those that need to be added to a credit

report, um, like cash advances from a credit card can't be used.

Or even, you know, for a lot of people it's like, okay, I sold my truck

and here's a $10,000, uh, deposit.

Okay.

Like I need a receipt to see that you actually sold the truck.

And unfortunately, a lot of this has come from a lot of the money laundering

rules since the Patriot act where.

Banks and lenders have to report all this information of

how money got shifted around.

It's really annoying, but what I recommend for people, if you're

gonna have, uh, deposits first, talk to your loan officer about this.

Hey, is, would this deposit be acceptable if it's not acceptable?

as long as you're waiting two months.

The underwriter, won't see it.

Cuz you're only gonna have to submit 60 days, two months worth

of bank statements to your lender.

So if you have a deposit before that, it's, what's called seasoned that

money already sits there and exists.

And the lender doesn't have to see before the two month period now, anything they

see, they can question and actually subtract it from the money you can use.

So for instance, Let's say we have $30,000 in our bank account

and you have $10,000 in cash.

And you're like, I've just been saving $10,000 in cash, which a lot of people

do, uh, for some reason kind of blows my

Yeah.

The mattress money.

Yeah.

yeah, I finding a lender that will accept

cash is almost impossible.

At this point, it can ex it exists in some of the guidelines that say,

this is the way it's acceptable.

I have yet to find a lender that will allow cash.

It's just too risky.

Um, because that lender then might have to answer, what was this cash?

Did you prove that, how do you know for certain that that's where it came from?

And it's so hard to document because it could come from anything.

Um, even if we're giving like receipts and it just have very rarely seen cash work.

so let's say we have $30,000 on our account and we had

a 10,000 R cash deposit.

What might end up happening is a lender says we can't use 10,000.

We can only use 20.

And if your down payment and closing costs are going to cost you 25, we need

to find another way to bring in $5,000 or to prove that we have $5,000 that we have

access to, which often can cause people to need things like a gift from a family

member or different things like that, to

I was gonna ask about gifts from family members.

So let's say, and I, I know I've seen this come up sometimes, but let's say that you

have, you know, generous parents that are in a place to, or family member or friend

or someone that is in a place to gift you, you know, funds towards a down payment.

What would someone need to know about that or about documenting that.

Yeah.

Gifting is, is really easy.

It's just a small bit of paperwork, so, uh, yeah, a family member.

It can't be a friend.

Can't just be like, Hey, I really like you also, if you have those

friends who are giving you money like that, I would love to be connected.

I think we it'd be your great friends too.

so it's usually has to be a family member and different loans have different

guidelines, which you can look up.

Sometimes.

Sometimes cousins are allowed sometimes they're not sometimes,

you know, all those things.

so if it's apparent really easy, uh, what I recommend is talking with a

loan officer to coordinate this first, what a lot of people do is they move

the money around without telling me, and then like, oh my gosh, okay.

We have to document it this way then.

And the documentation depends on how the money got move.

So if the money went from your parents' bank account to yours,

let's say they gifted you $10,000.

I need to see like updated bank statements.

I see to see it proof of the check.

It's all like annoying.

The easiest thing is talk to your loan officer and what's

usually best is the donor gifts.

The gives the money to the title company.

The title company will provide a receipt that the money's

there and that's all that we.

there's a gift letter as well.

And the gift letter is gonna say, we, the parents give our child $10,000

with no expectation of repayment and a couple other details, you know, date,

phone, number, all that kind of stuff.

And it's really.

That basic.

And for most loans you can use the gift to cover the down payment and or the closing

costs, um, which can be really helpful and gifts are actually extremely common.

so gifting is not terrible.

It just, sometimes the issues with documentation, with something like

an FHA loan, often lenders will want the donors bank statement.

They wanna make sure that it didn't come from same thing, those money laundering.

Uh, kind of policies.

They wanna make sure it didn't come from some random, whatever

Right.

They're just saying that the deposit matches the withdrawal

that came from where you said it came from and kind of closing the

loop on the documentation for that.

They need to make sure that you didn't.

Yeah.

They don't wanna see the donors bank statement.

All of a sudden there was our cash deposit for $10,000 and then

they immediately gave that to you.

Cause that's laundering.

We just

right.

through a donor.

we just added someone else into the loop.

Yeah.

They're like you, they don't want you to try to work around the

policy by doing something like that.

So, sometimes the friction can happen when we ask a donor for bank statements

and they throw a fit and they're like, I don't know what to tell you,

but this is the only way it works.

This is literally the guidelines.

I don't make the world.

Right.

I'm not doing this for fun.

Yeah.

yeah, after three days of huffing and puffing, we

get it through and it works that's one of the only frictions with.

I think again, the really important thing to note

here is if you just pause before taking action and run it by your loan

officer, it can save time headache.

All of that.

And I see that a lot and what we do, it's so much easier.

Not that we want to be here to give you permission to do or not do things, but

because we can help things flow so much more efficiently, that will save you time.

Anyone else that you're working with time and can get you to your end goal?

Cause I think all of our goal is to, you know, Loan officer's goal

is to get you into that house.

Get you funded, make that happen.

You know, our goal is to see you live out your financial dreams.

Like we're not here to do nefarious things.

We wanna see you succeed.

So let us help you succeed.

That's the biggest cause of friction.

Like it's the easy, the quickest way to hate your loan officer is to do stuff

and then tell them after is because they're gonna be like you did what?

Okay.

Well, now that you did that, like there's only these few options.

Whereas if you told me before, we could've, you know, I had a, a client

once who, the day before closing, he was like, Hey, guess what?

I got a new job.

What he was like, yeah.

I make more money.

It's not a problem.

Yeah.

It is absolutely a problem.

Uh, so we had to wait another month and guess who everyone was mad at me.

when, like, we absolutely told him no,

no no big life changes.

Yeah.

Uh, but I'm the issue, cuz I couldn't make it work.

Like that's not how this works.

Right.

I, I can only do what I can do within the parameters that I can work within.

Oh goodness.

Whereas if he asked me, I would've said, Hey, wait a week.

Right.

And this would, this would be a non-issue.

All right.

Oh man.

No, I think the timing can be so important.

And I think at the same time that it can be so important.

People also make it out to be more complicated than it has to be.

Mm-hmm Yeah.

if someone, cuz we, we walk through what it looks like, right.

If someone gets approved, everything's great.

It lines up with their plans.

They're able to go house shopping.

Let's say someone comes in and you know, they, they chat with three different,

you know, lenders and they look at.

Their finance.

Isn't like, Hey, you know, to do what you want to be doing or to

afford the, the house that you want.

You know, these are some action items that you need.

This is probably a super general question, but for what you see,

what does that normally look like?

Is it normally like, Hey, we need to get your credit score up, you know,

20 to 40 points or, Hey, we need to do some debt payoff or, Hey, we need a

bigger down payment or, you know, kind of a combination of those, depending

on their personal financial situation.

Mm.

I think this depends a lot based on the location.

Um, for me, you know, I I'm, I'm in Dayton, Ohio, so we're kind of

a kind of smaller ish Metro area with a lot of like rural around it.

The biggest problem all day long is the amount of cash.

People have to be able to buy a house.

Um, because buying house costs money up front.

There are some creative ways, you know, different loans we can use to do 0% down,

but there's still gonna be closing costs.

And then things like a seller's market.

It's difficult to get the seller to pay, you know, negotiate for

them to pay the closing costs.

And so that's one of the hardest things is like, everything's great, but it's

gonna cost you $10,000 to buy this house with your down payment closing costs.

And you sent me a bank statement that has $7 in it.

So like, we need to somehow figure out how to make this work.

That is the biggest thing that I see is people who don't have

the savings for buying a house.

Um,

mm-hmm.

and I think it's, it's really scary because I see so many

people who buy home and it wipes their bank account clean, um, where, like

they bought, but they don't have any money left and it's not a really great

financial position to be in, I think for a lot of people, um, which is why I, I

feel like it is helpful to include an emergency fund in your timing, where.

You absolutely can still talk to a loan officer to see those numbers, but you

might take a look at it and be like, Hey, this bottom line number is gonna

wipe us clean and we don't want that.

So maybe we back away from the home buying for a second to save maybe

three months worth of expenses.

And then we can reenter into the conversation because no

amount of potential appreciation in a home is worth us.

Not having any money to be able to cover repairs or moving

costs or anything like that.

Or health issues that come up or emergencies or a

car breaks down or anything else?

I know when I, I, I was that person with my first house.

I hated living in an apartment and I could just barely make it happen.

And I did it and I had almost a $3,000 repair that had to happen

on the house that we didn't know about six months after I bought.

So it immediately went on, on a credit card and I spent the next

three years dipping into credit card debt and then paying it all off.

And it is what it is.

It allowed me to live where I lived.

I'm grateful to it.

I've thinked it's for, you know, thinked it's for its use, but

it was really, really stressful.

And didn't have to be had I been able to wait a few more months and set a few

thousand dollars aside over that time.

And that was a big factor in this house.

We could've put just barely 20% down, but it would've wiped everything.

So we put 10% down, took the hit on the PMI, which was not that bad to then

have a much more robust emergency fund.

And it is like night and day, the, the, you know, lack of stress that we have,

and we were able to make improvements.

We were able to buy the furniture.

We were able to do the things that we wanted to do because we weren't.

So cash strapped.

Yeah, absolutely.

Would you like me to run through the, the timing of being under

contract too really quickly?

I think that would be really helpful.

Yeah.

Cool.

Uh, the under contract piece goes pretty quick.

Let's say we got approved for mortgage.

Then we talked with a real estate agent.

Cause that's the next step after that.

And uh, we wanted to look for home and we're kind of saying, Hey,

we want these things and we, we need three bedrooms, two baths.

This much square footage would be nice.

This school district be great.

And our lender approved us for this and we wanna stay in that price range.

Cool.

We go and look at some homes, we find a home that we like.

A real estate, agent's gonna help us write an offer.

And the offer just basically says, Hey, we'll buy this for $400,000.

We're gonna close in 30 days.

We're gonna use this lender.

Uh, we would like you to include the washer and the dryer and the, whatever

that in your offer, the seller, then hopefully is gonna accept the offer.

After that you have a due diligence period.

This is negotiated, but usually about two weeks, uh, where you can.

Have an inspection done on the home.

This could be a general home inspection, could be something more

specific, like a chimney inspection or structural inspection if you need

something like that, an older home.

Um, so you have this inspection period where you can get an inspector out and

then you can potentially request repairs if you need it or back out the contract.

Uh, if you're like, Ooh, this is way too much work.

We didn't expect all this.

Um, after the inspection, you're gonna then gonna have a appraisal.

The lender's gonna have an appraiser come out, make sure the home is

worth what we wanted a contract for.

Um, that's gonna come back.

You're also gonna be working with your loan officer again to potentially update

things like your bank statements, uh, your pay stubs, maybe a credit report.

If it's you've been shopping for a while, they're gonna tie everything together.

And, uh, they're gonna give you a document called a loan estimate.

This is gonna be three days after you get under contract is when they give you

that first document to finalize your.

And show you like all the updated terms.

And then you'll have your inspection, your appraisal, uh, at some point

in the process, your entire loan fin package is gonna be finished.

And this is when everything comes back, uh, your appraisal came back,

all your documents are submitted.

There's gonna be something called a title report that your lender's

gonna get on your behalf that most people don't even know happens.

Um, when they put all that together in the file, you're gonna get

something called, uh, a clear to close where the lender's like.

Everything's done.

We're never gonna request anything of you again.

We're all good to go.

They're then going to issue you.

What's called a closing disclosure.

And this is gonna be like your initial quote, but it's gonna have more updated

and finalized fees cuz every, all the third parties submitted their fees.

So you'd be able to say, this is our bottom line number.

Unfortunately, in the home buying process, it's not like one number and that's it

through the whole process, those numbers can change, um, slightly, depending on,

you know, different quotes that come in.

Then usually what people do is they'll schedule walkthrough of the home

about 24 hours before you close, uh, this to make sure like, Hey, there's.

Damage to the home before we move in or before we close, uh,

then you'll have your closing.

Uh, this happens differently in different states here.

It's very common for everyone to sit the closing table together.

And it's like a big kumbaya moment.

yeah, it's, it's a little interesting, like you say, you have the title company

there, the buyer, the seller, the agents, everyone signs, exchange a check too.

today.

Oh like buyer an that is very different.

Okay.

A lot of places that happen separately.

so it's kind of strange that that's happens here, but, um, then you

close and then your mortgage payment is due, uh, a month minimum later.

It's very confusing how this happens.

So for instance, we're at June 2nd.

So the first payment would not be due July 1st.

it would happen, um, like.

I'm trying to think of the easiest way to

First of the month, at least 30 days after the close.

So August 1st

Yeah.

that might be still kind of convoluted, but yeah.

I know it's, it's all those things like

how do, how do you make this?

How do I like package this in a clear sentence?

but if June, if June had 31 days and it, this

was June 1st, hypothetically, then would that be a July 1st?

Okay.

it'd still be August 1st.

So we're in June right now.

So we have to skip all of June.

July gets skipped.

The first mortgage payment is August 1st.

Um,

But if you bought June 28th, it would still be August.

I

correct?

Yeah.

So there's that full one month that is skipped and then you're actually

paying the interest in between, you know, we'd be paying mortgage interest

between June 2nd and the end of June

think that's super helpful.

Awesome.

Kyle, thank you.

We will be back on our next episode, chatting about.

Budget and financing and all of the financial things really, because

I think that's actually gonna be a little bit of a, a more in depth

episode with what all we have to cover.